High Court of KeralaDivision BenchThe writ appeal is dismissed; the underlying di...

Naduvannur Regional Co-operative Bank Ltd. v. Kavunthara Service Co-Operative Bank Ltd and others

Case / Petition Number:WA No.240 of 2022

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. B. Suresh Kumar
  • C. S. Sudha
Judgment Date
2022-03-02
Court Decision / Holding
Writ Appeal No.240 of 2022 dismissed. The Division Bench held that the impugned direction to treat Ext.P6 as an appeal under Section 83(1)(j) of the Kerala Co-operative Societies Act, 1969 was not erroneous in the circumstances, and the appeal itself lacked merit.
Final Disposition
The writ appeal is dismissed; the underlying directions of the Single Judge regarding treating Ext.P6 as an appeal under Section 83(1)(j) are not continued as a basis for relief in the appeal.

Parties to the Case

Appellants / Petitioners

  • Naduvannur Regional Co-operative Bank Ltd.

Respondents

  • Kavunthara Service Co-Operative Bank Ltd
  • State of Kerala
  • Joint Registrar of Co-operative Societies (G)
  • The Liquidator/Koyilandy Unit Inspector

Legal Representation & Advocates

Counsels for Petitioners

  • • P.P. Jacob

Counsels for Respondents

  • • M. Sasindran
  • • V.K. Sunil

Case Synopsis & Summary

This writ appeal challenges the 03.02.2022 judgment in W.P.(C) No.26191/2019. The origi­nal subject concerns the winding up of Naduvannur Service Co-operative Bank (registered under the Kerala Co-operative Societies Act, 1969) on 01.11.2003 and the later amalgamation of its assets and liabilities with the appellant bank, following Ext.P5 (order of Joint Registrar issued on 28.06.2018). The first respondent filed Ext.P6 (08.08.2018) seeking transfer of assets and liabilities, which the Government forwarded to the Joint Registrar, culminating in Ext.P8, rejecting the request. The learned Single Judge held that Ext.P5 was appealable under Section 83 of the Act and that Ext.P6 should be treated as an appeal under Section 83(1)(j) with notice to all parties, directing the Government to dispose of it on merits. The appellant contends that the winding-up order had become final in 2003, and any challenge should have been within 60 days under Section 83(1)(f); there is no power to condone delay. It relies on Calicut City Service Cooperative Bank Ltd. v. State of Kerala and Sivakumar v. Sreekumar. The respondents argue Ext.P6 is a challenge to Ext.P5, not a winding-up order, and the impugned direction was correct. The Division Bench ultimately dismisses the appeal, upholding the impugned order.

Provisions of Law Cited

Kerala Co-operative Societies Act, 1969 – Section 83Section 83(1)(f)Section 83(1)(j)Article 226 of the Constitution of India

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant-bank contends that the winding-up order dated 01.11.2003 had become final and could only be challenged within 60 days under Section 83(1)(f). It argues that the Government had no power to condone delay in filing an appeal and that Ext.P6, which is a representation, cannot be treated as an appeal under Section 83. It relies on Calicut City Service Cooperative Bank Ltd. v. State of Kerala asserting that the Government’s treatment of Ext.P6 as an appeal is improper, and on Sivakumar v. Sreekumar to oppose reopening a statutory appellate order on the basis of a representation.

Contentions of Respondents

The respondents maintained that Ext.P6 was a representation against Ext.P5, which directed amalgamation, not a direct challenge to the winding-up order. They argued the essential grievance was against Ext.P5, not against winding up itself, and that Ext.P6 was properly forwarded for consideration to the Joint Registrar, with Ext.P8 ultimately rejecting the representation. They contend the impugned judgment correctly treated Ext.P6 as a belated appeal under Section 83(1)(j) and left open their contentions to be dealt with by the Government.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Calicut City Service Cooperative Bank Ltd. v. State of Kerala2008 (3) KLT 1011DistinguishedCourt distinguished the reliance on Calicut City Service Cooperative Bank Ltd. as unsustainable to support treating Ext.P6 as an appeal; the decision was not followed in the present fact pattern.
Sivakumar v. Sreekumar2002 (1) KLT 354Mentioned OnlyCited to discuss that Government cannot reopen a statutory appellate order on the basis of a representation; not applied to the facts of this case.
W.P.(C) No.10667 of 2009—Mentioned OnlyReferenced regarding the basis for Ext.P5 order; not elaborated as a binding authority in the present context.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT** ## **THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR** **&** **THE HONOURABLE MRS. JUSTICE C.S. SUDHA** **WEDNESDAY, THE 2[ND] DAY OF MARCH 2022 / 11TH PHALGUNA, 1943** ## **WA NO. 240 OF 2022** **AGAINST THE JUDGMENT IN WP(C) NO.26191/2019 DATED 03.02.2022 OF HIGH COURT OF KERALA** ## **APPELLANT/4TH RESPONDENT IN W.P.(C)NO.26191/2019:** **THE NADUVANNUR REGIONAL CO-OPERATIVE BANK LTD.NO. F 1269 NADUVANNUR, KOZHIKODE 673 614, REPRESENTED BY ITS SECRETARY** **BY ADV P.P.JACOB** ## **RESPONDENTS/PETITIONER AND RESPONDENTS 1 TO 3 IN W.P.** **(C)26191/2019:** - **1 THE KAVUNTHARA SERVICE CO-OPERATIVE BANK LTD NO. D 3205,** - **SAFA BUILDING PALLIYATHKUNI, KAVL. P.O., NADUVANNUR, KOZHIKODE 673 614 REPRESENTED BY ITS SECRETARY** - **2 THE STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, SECRETARIAT, THIRUVANANTHAPURAM 695 001** - **3 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (G),** - **KOZHIKODE, OFFICE OF THE JOINT REGISTRAR OF COOPERATIVE SOCIETIES (G), PUTHIYARA, KOZHIKODE - 673 004** Writ Appeal No.240 of 2022 2 **4 THE LIQUIDATOR/KOYILANDY UNIT INSPECTOR, OFFICE OF THE ASSISTANT REGISTRAR OF COOPERATIVE SOCIETIES (G0 KOYILANDY-673 001, KOZHIKODE DISTRICT.** **BY ADV M.SASINDRAN V.K.SUNIL,SR.GOVERNMENT PLEADER** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 02.03.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 3 Writ Appeal No.240 of 2022 **P.B.SURESH KUMAR & C.S.SUDHA, JJ. ----------------------------------------------Writ Appeal No.240 of 2022 -----------------------------------------------** ## **Dated this the 2[nd] day of March, 2022.** ## **JUDGMENT** ## **P.B.Suresh Kumar, J.** This writ appeal is directed against the judgment dated 03.02.2022 in W.P.(C) No.26191 of 2019. The appellant was the fourth respondent in the writ petition. 2. On 01.11.2003, Naduvannur Service Co-operative Bank (the Society), a Co-operative Society registered under the Kerala Co-operative Societies Act, 1969 (the Act) was ordered to be wound up by the competent authority, and a liquidator was appointed for the said purpose. Later, on the basis of the decision of the general body of the Society, the concerned Joint Registrar of Co-operative societies ordered amalgamation of the assets and liabilities of the Society with the appellant society. Ext.P5 is the order issued by the Joint Registrar in this regard on 28.06.2018. On coming to know of Ext.P5 order of the Joint Registrar, the first respondent, another society preferred 4 Writ Appeal No.240 of 2022 Ext.P6 representation before the Government on 05.08.2018 seeking orders for transfer of the assets and liabilities of the Society with them. Ext.P6 representation was forwarded by the Government to the Joint Registrar, and in terms of Ext.P8 order, the Joint Registrar has turned down the request of the first respondent taking the stand that Ext.P5 order was one issued in the light of the judgment of this court in W.P.(C) No.10667 of 2009. Ext.P8 order was under challenge in the writ petition. 3. The learned Single Judge took the view that Ext.P5 order of the Joint Registrar being one appealable before the Government in terms of Section 83 of the Act, it should have been dealt with by the Government itself and consequently disposed of the writ petition directing the Government to treat Ext.P6 representation as an appeal and dispose of the same on merits with notice to all concerned, notwithstanding Ext.P8 order. The appellant is aggrieved by the said decision of the learned Single Judge and hence this appeal. 4. Heard the learned counsel for the appellant, the learned Government Pleader as also the learned counsel for Writ Appeal No.240 of 2022 5 the first respondent, the writ petitioner. 5. The learned counsel for the appellant submitted that the Society was ordered to be wound up as early as on 05.09.2003 and the said order has become final. It was pointed out that if at all anybody was aggrieved by the said order, he ought have preferred an appeal against the said order in terms of Section 83(1)(f) of the Act within 60 days from the date of the order. It was argued by the learned counsel that the learned Single Judge has permitted the first respondent to challenge the said order which has become final after almost 18 years. According to the learned counsel, when the scheme of the statute is that orders of that nature should become final after 60 days, the learned Single Judge ought not have issued such a direction in exercise of the power under Article 226 of the Constitution. It was also argued by the learned counsel that at any rate, insofar as the Government does not have any power under the Act to condone the delay in filing an appeal under Section 83 of the Act, the learned Single Judge ought not have held that Ext.P6 representation preferred by the first 6 Writ Appeal No.240 of 2022 respondent several years after the order of winding up is liable to be treated as an appeal. The learned counsel has relied on the decision of this court in **Calicut City Service Cooperative Bank Ltd. v. State of Kerala,** 2008 (3) KLT 1011, in support of the said contention. It was also argued by the learned counsel that Ext.P6 is only a representation submitted by the first respondent, and in the light of the decision of this court in **Sivakumar v. Sreekumar,** 2002 (1) KLT 354, this court ought not have directed the Government to treat a representation as an appeal under Section 83 of the Act. 6. Per contra, the learned counsel for the first respondent pointed out that the grievance voiced by the first respondent in Ext.P6 representation is against Ext.P5 order of the Joint Registrar directing amalgamation of the assets and liabilities of the Society with the appellant society and their grievance is not against the order of winding up of the Society. It was pointed out that Ext.P5 order is wrongly referred to in the impugned judgment as the order of winding up of the Society. According to the learned counsel, the essence of the judgment Writ Appeal No.240 of 2022 7 impugned in the appeal is that insofar as an appeal is provided against the order in the nature of Ext.P5 in terms of Section 83 of the Act, it was inappropriate for the Government to forward Ext.P6 representation to the Joint Registrar and it was inappropriate for the Joint Registrar to dispose of the same. According to the learned counsel, the impugned judgment does not therefore call for any interference. 7. We have considered the arguments advanced by the learned counsel for the parties on either side. 8. A close reading of Ext.P6 representation would indicate beyond doubt that the grievance voiced by the first respondent in Ext.P6 representation is against Ext.P5 order of the Joint Registrar. It is the said representation that was forwarded by the Government for consideration by the Joint Registrar and it is the request made by the first respondent in the said representation that was turned down by the Joint Registrar as per Ext.P8 order. As noted, the writ petition is one instituted challenging Ext.P8 order. The learned counsel for the first respondent, in the circumstances, is right in submitting 8 Writ Appeal No.240 of 2022 that the essence of the judgment is that insofar as an appeal is provided against the order in the nature of Ext.P5 under Section 83 of the Act, it was inappropriate for the Government to forward Ext.P6 representation to the Joint Registrar and it was inappropriate for the Joint Registrar to dispose of the same. True, it is stated by the learned Single Judge in the impugned judgment that a winding up order is appealable before the Government under Section 83(1)(f) of the Act. The said statement is certainly a mistake and the appellant cannot take advantage of the same. Insofar as what was directed by the learned Single Judge in the impugned judgment was only to treat Ext.P6 representation preferred by the first respondent before the Government against Ext.P5 order within the time prescribed for preferring an appeal under Section 83(1)(j) of the Act, as an appeal under Section 83(1)(j) of the Act, the contention raised by the learned counsel for the appellant based on the decision of this court in **Calicut City Service Cooperative Bank Ltd.** is unsustainable. In **Sivakumar** , this court held that the Government cannot reopen a statutory 9 Writ Appeal No.240 of 2022 appellate order on the basis of a representation filed by a person who claims himself aggrieved by it. In the instant case, as noted, the learned Single Judge has only directed to treat a representation against an order before an authority, as an appeal before the very same authority. The decision in **Sivakumar** cannot have any application to the facts of the present case. That apart, insofar as the learned Single Judge has left open the contentions of the parties to be dealt with by the Government, we do not find any reason for the appellant to be aggrieved by the impugned decision. The writ appeal, in the circumstances, is without merits and the same is, accordingly, dismissed. **Sd/P.B.SURESH KUMAR, JUDGE.** **Sd/C.S.SUDHA, JUDGE.** Mn